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learing2012's picture
Status: Member (Offline)
Joined: Mar 4 2012
Posts: 6

 This is an interesting summary/opinion. The Fed is actually so arrogant in its ideas.

Davos's picture
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
"Do something, do anything" --- Desperation

  “Sterilized fx: They may attract attention and make people feel good, but ultimately they’re all show and no dough”~The Federal Reserve Bank Minneapolis


If they don’t work, why do them?

In the end, as described above, sterilized fx interventions—like their cinematic counterparts—are all show and no dough. Economic theory and empirical evidence tell us so. So why do them? At this point, a perfectly good answer would be to throw up one’s hands and say, “I don’t know.” But let’s take a look at a couple of commonly cited rationales. Link to FRB Paper




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